American Capital purchased 87 percent of Scientific Protein Laboratories in 2006. Scientific Protein Laboratories has a fair market value of $186.5 million. Last year, the parent company sought coverage from its insurers for lawsuits related to Scientific Protein Laboratories’ involvement in the tainted heparin scandal.

While Baxter International is at the center of the tainted heparin controversy, the Charter Oak Fire Insurance Co. and Travelers Property Casualty Co. of America argue that in its application for coverage, Scientific Protein Laboratories’ parent company American Capital claimed it had no subsidiaries and never mentioned Scientific Protein Laboratories or its China-based heparin venture, according to the report. In its lawsuit filed last week, the insurance companies claim that “American Capital provided false answers to Charter Oak and Travelers regarding the non-existence of subsidiaries.”

The lawsuit also claims that American Capital and Scientific Protein Laboratories entered into an agreement with Baxter International that included making payments to Baxter and giving “rights to insurance proceeds and benefits,” according to the report.

SOURCE: Heparin Recall › Heparin producer’s insurers file lawsuit

Franke Leon Isom of Webster, Ken., died Dec. 14, 2007, a day after he was given heparin during treatment at Woodland Dialysis Clinic in Elizabethtown. Attorneys argue that Isom received part of the 55,000 gallons of heparin that was contaminated with over-sulfated chondroitin sulfate (OSCS).

Earlier this year, a series of deaths and adverse allergic reactions from patients who had received doses of heparin led to an investigation that linked the reactions to lots of heparin made at Baxter International’s China plant. Further review found the heparin had been contaminated with OSCS during manufacturing in China. Shortly thereafter, the FDA ordered a recall. The tainted heparin is blamed for more than 240 deaths worldwide and caused hundreds more people to fall ill from allergic reactions to OSCS, such as hypotension.

The lawsuit, filed on the behalf of Isom’s estate, is one of 50 similar civil tort claims against Scientific Protein Laboratories and Baxter International, according to the news report. Attorneys argue that recalled lots of heparin were still found on hospital shelves months after the recall went into effect.

SOURCE: Heparin Recall › Another lawsuit filed in tainted heparin scandal

Last month I told you that California Rep. Harry Waxman, who serves as head of the House Oversight and Government Reform Committee, raised concerns that items outlined on the FDA’s 2007 priorities list appeared to prioritize industry desires over consumer protection.

This, just months after more than 80 American deaths were linked to tainted heparin that was made in Baxter International Inc.’s facility in China. FDA officials later acknowledged they had not inspected that facility and claimed they had insufficient staff and financial resources to regularly inspect overseas manufacturers.

Today, the Washington Post reported that the FDA has hired a public relations company it improve its image. However, in yet another PR blunder, the story reports that the way it hired the company may also be raising eyebrows.

The story suggests that the FDA may have violated government contracting rules by not holding a bidding competition for a $300,000 contract hiring a firm to create “a lasting positive public image for the agency.” Instead it made a deal with Alaska Newspapers Inc., (ANI) which is exempt from having to compete for federal work because it qualifies for special set-asides. ANI agreed to funnel all the work to the FDA’s agency of choice, Qorvis Communications. Apparently the FDA’s new PR head, Mildred Cooper, had connections to the firm and wanted to use it.

The FDA cancelled its contract with ANI/Qorvis Communications after the Washington Post’s story ran. And while the FDA claims it never meant to do anything questionable during the selection process, this latest blunder certainly hasn’t helped the organization’s public image.

SOURCE: Heparin Recall › FDA makes blunder during hiring of PR firm to improve image

According to the report, aides for both candidates said that recent health scares had dampened their candidates’ enthusiasm of reimportation. Neither candidate has abandoned the prospect; however, they admit it has become a more controversial subject.

Other countries, such as Canada, have government price controls that keep prescription drug costs down, making reimportation of foreign drugs a far more attractive option, especially for those who spend hundreds and thousands of dollars on prescriptions each year. While several U.S. bills on reimportation have been proposed, none have become law, the report stated.

Organizations representing pharmaceutical companies such as the Generic Pharmaceutical Association (GPhA), oppose the practice, arguing that there is no guarantee drugs or goods from other countries would be safe, Reuters/Boston Globe reported.

Earlier this year, American deaths were linked to tainted heparin that was made in Baxter International Inc.’s facility in China. According to news report, FDA officials acknowledged they had not inspected that facility and claimed they had insufficient staff and financial resources to regularly inspect overseas manufacturers.

SOURCE: Heparin Recall › Candidates review reimportation of prescription drugs

The new expanded recall includes all remaining lots and doses of Baxter’s heparin sodium injection multi-dose, single-dose vials and HEP-LOCK heparin flush products, both preserved and preservative-free. The recall will not include Baxter’s heparin pre-mix IV solutions in bags.

Although there was a danger of contamination that could result in adverse patient reaction, the U.S. Food & Drug Administration did not require Baxter to do a full recall of the product in January because pulling all of the product could create a shortage for operating rooms, dialysis centers and other critical areas that use the product, which is a blood thinner.

According to a Baxter news release, in January the FDA determined the risk of patients not receiving any heparin blood thinners when it was critically needed was greater than that of patients receiving contaminated product. Baxter is one of the leading suppliers of heparin products, manufacturing about one half of the multidose vials used each month by health care providers.

The FDA now feels there is enough heparin available from other sources to allow Baxter to pull its remaining, possibly contaminated, product.

Customers are advised to immediately discontinue use of recalled product, and to contact Baxter for return and replacement.

Despite FDA assurances that there is enough heparin product in the market to treat critical patient needs, by March health care providers were being more careful with prescribing their existing supplies as a result of the more limited supply.

SOURCE: Heparin Recall › Baxter expands heparin recall